Chapter 13 Bankruptcy may stop or delay home foreclosure

If you default on mortgage payments, you run the risk of losing your home foreclosure. Foreclosure may be a daunting challenge, and those who face it may be desperate to find a way to escape the process. Bankruptcy is one of those remedies. Filing for Chapter 7 or Chapter 13 Insolvency can temporarily stop the process, and you may even be able to save your home after Chapter 13 Insolvency permanently.

If you file for bankruptcy, all foreclosure proceedings must be terminated immediately. The filing purpose is a pause button in the foreclosure process by granting an automatic stay. Generally, the suspension gives the owner a little break from the bank’s attempts to reclaim it.

Chapter 13 Insolvency is referred to as a process or restructuring plan for employees. With Chapter 13 Insolvency, those with secure income can set up a payment plan to pay off their creditors without selling their assets, as in Chapter 7. With Chapter 13 Insolvency, you are developing a payment plan that will take between three and five years to complete. Missed mortgage payments can be included in the program so that you can keep up with the mortgage.

You must keep up to date with your payment schedule. You’re just going to have to keep up with your current mortgage payments to maintain your home. You will claim a refund from your contractual commitments after you have completed your repayment plan.

Chapter 13 Bankruptcy requires you to pay back arrears for the period of the planned Chapter 13 payment schedule; five years in most situations. However, you would require enough income in addition to paying the arrears to support your present mortgage payment. If you make all payments needed by the end of the payment period, prevent forfeiture, and keep your estate.

Chapter 13 is not for all and requires a considerable commitment to the claimant to complete the payment. However, Chapter 13 provides certain people with the financial assistance they need to preserve their homes. For more help in your future case in Chapter 13, please contact the bankruptcy solicitor.